The dollar held largely steady on Friday as bond markets stabilized and traders awaited key US jobs data expected to fuel speculation of an interest rate cut this month.

The dollar rose on Thursday and is on track for a second consecutive weekly gain in relatively quiet trading as investors refrained from making major moves ahead of the US jobs report.

Data yesterday showed a higher-than-expected increase in US initial jobless claims. This data paves the way for the more important nonfarm payrolls report that will determine the Federal Reserve’s monetary policy decision this month.

The dollar index, which measures the US currency against a basket of six major currencies, saw little change, settling at 98.207 and is set to rise 0.4% this week.

The dollar fell 0.2% to 148.22 yen, while the euro rose 0.1% to $1.1656.

Several Federal Reserve officials said concerns about the labor market continue to support their stance favoring rate cuts, boosting expectations of imminent monetary easing. The US central bank is scheduled to meet on September 16-17.

The ADP research institute’s employment report showed private sector job growth in the US was lower than expected in August.

Meanwhile, data indicated initial claims for government benefits rose by 8,000 to a seasonally adjusted 237,000 for the week ending August 30. Economists surveyed by Reuters had expected 230,000 claims for that week.

According to CME’s FedWatch tool, traders now expect nearly a 100% chance of a rate cut this month, up from 87% a week ago.

Recent rises in long-term Treasury yields have signaled growing concerns about the resilience of major economies from Japan to Britain and the US.

Those concerns eased Thursday and Friday as yields retreated to lower levels.

The British pound advanced 0.1% to $1.3447. The Australian dollar rose 0.1% to $0.6525, and the New Zealand dollar gained 0.2% to $0.5855.